basic-guide-to-exporting_Latest_eg_main_086196

Export-Import Bank of the United States(Ex-Im Bank)U.S. government organization that provides export financeproducts to U.S. exporters and foreign buyers of U.S. products.Export LicenseGovernment document that authorizes the export of specificgoods, in specific quantities, to a specific destination. May berequired for most or all exports to some countries, or for othercountries only under special circumstances.Export Management Company (EMC)Company that performs the functions that would be typicallyperformed by the export department or the international salesdepartment of manufacturers and suppliers. EMCs developpersonalized services promoting their clients’ products tointernational buyers and distributors. They solicit and transactbusiness in the names of the producers they represent orin their own name for a commission, salary, or retainer pluscommission. EMCs usually specialize either by product or byforeign market. Because of their specialization, the best EMCsknow their products and the markets they serve very well andusually have well-established networks of foreign distributorsalready in place. This immediate access to foreign markets is oneof the principal reasons for using an EMC, because establishinga productive relationship with a foreign representative may be acostly and lengthy process.Export Packing ListList that itemizes the exported material in each package andindicates the type of package, such as a box, crate, drum, orcarton. An export packing list is considerably more detailed andinformative than a standard domestic packing list. It also showsthe individual net, tare, and gross weights and measurementsfor each package (in both U.S. and metric systems).Export Processing Zone (EPZ)Site in a foreign country established to encourage and facilitateinternational trade. EPZs include free trade zones, specialeconomic zones, bonded warehouses, free ports, and customszones. EPZs have evolved from initial assembly and simpleprocessing activities to include high-tech and science parks,finance zones, logistics centers, and even tourist resorts.Export QuotasSpecific restrictions or ceilings imposed by an exporting countryon the value or volume of certain exports designed, for example,to protect domestic producers and consumers from temporaryshortages of the goods affected or to bolster their prices inworld markets.Export SubsidiesGovernment payments or other financially quantifiable benefitsprovided to domestic producers or exporters contingent on theexport of their goods and services.Export Trading Company (ETC)Company that acts as an independent distributor, creatingtransactions by linking domestic producers and foreign buyers.As opposed to representing a given manufacturer in a foreignmarket, the ETC determines what U.S. products are desired in agiven market and then works with U.S. producers to satisfy thedemand. ETCs can perform a sourcing function, searching forU.S. suppliers to fill specific foreign requests for U.S. products.Ex Works (EXW)The buyer is responsible for all export procedures, includingvehicle loading, transportation, and costs arising after collectionof the goods.Foreign Agricultural Service (FAS)A U.S. Department of Agriculture bureau with programs relatedto market development, international trade agreementsand negotiations, and the collection of statistics and marketinformation. It also administers the USDA’s export creditguarantee and food aid programs, and helps increase incomeand food availability in developing nations.Foreign Corrupt Practices Act (FCPA)Act making it unlawful for persons or companies subject to U.S.jurisdiction to offer, pay, or promise to pay money or anythingof value to any foreign official for the purpose of obtaining orretaining business. It is also unlawful to make a payment toany person while knowing that all or a portion of the paymentwill be offered, given, or promised, directly or indirectly, toany foreign official for the purposes of assisting the companyin obtaining or retaining business. “Knowing” includes theconcepts of “conscious disregard” and “willful blindness.” TheFCPA also covers foreign persons or companies that commitacts in furtherance of such bribery in the territory of the UnitedStates. U.S. persons or companies, or covered foreign persons orcompanies, should consult an attorney when confronted withFCPA issues.Foreign-Trade Zones (FTZ)Domestic U.S. sites that are considered outside U.S. customsterritory and are available for activities that might otherwise becarried on overseas for customs reasons. For export operations,the zones provide accelerated export status for purposes ofexcise tax rebates. For reexport activities, no customs duties,federal excise taxes, or state or local ad valorem taxes arecharged on foreign goods moved into zones unless and untilthe goods or products made from them are moved into customsterritory. Thus, the use of zones can be profitable for operationsinvolving foreign dutiable materials and components beingassembled or produced in the United States for reexport.220U.S. Commercial Service • A Basic Guide to Exporting